Ukraine’s economy is expected to fall by 35% this year as a result of the Russian invasion, the WB (World Bank) estimated this Tuesday (4th).
The damage will be long-term due to “the destruction of industrial capacity, damage to agricultural land and a dwindling workforce as more than 14 million people have been displaced,” the WB said in a statement.
For Ukraine’s reconstruction and economic recovery, US$350 billion will be needed, “which is more than 1.5 times the size of the Ukrainian economy before the war” and a sum that continues to increase, the WB estimated in September.
The effect of the war will be felt in the countries of Europe and Central Asia, for which the World Bank estimates a GDP contraction of around 0.2% this year.
The year 2023 will not be better. The bank expects growth of just 0.3% and “economic activity will continue to decline”.
“The most affected countries will be those that depend moderately or heavily on imported gas, as well as countries very connected to the European energy market”, insists the WB, which highlights that “these countries must be prepared to face restrictions on [fornecimento de] gas”.
“The sum of crises, the war in Ukraine, the pandemic and the increase in food and energy prices, is a sad message for states to prepare to face massive and unexpected shocks”, said Anna Bjerde, deputy in a statement. WB president for Europe and Central Asia.
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